Protecting debt is well-known and readily appreciated by those of skill in the art. In the area of consumers loans, a customer may acquire a loan from a provider. In some situations, the customer may want to protect the debt associated with that loan and the provider may want to offer protection on the debt associated with that loan. For example, the customer may want to ensure that the debt will be taken care of in some manner if the customer is unable to pay off the debt in a timely manner such as, for example, if the customer were to die. Conventionally, the provider may offer an insurance product on which the customer pays a premium such that, in the event the customer were to die, the provider would pay off the debt. There are a number of issues that arise with respect to the offering of an insurance product to protect a debt.
Insurance products that are used to protect debt are regulated separately by each of the 50 states. This state-by-state individualized regulation results in there being different rules in each state for the provision of the products. This can make the insurance product for debt protection very expensive to administer. For example, every time the rates for such products are changes, those rate changes must be updated and filed in each state. Also, health questionnaires for the insurance products must be reviewed by each state, and every time these questionnaires change they must be updated and filed in each state. Furthermore, the forms that disclose the insurance product must be reviewed by each state, and every time these forms change they must be updated and filed in each state. These and other aspects of the individualized regulation of the insurance products make them very time consuming to administer and raises the costs associated with their provision.
Accordingly, it would be desirable to provide for protecting a debt absent the disadvantages discussed above.